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Enable process visbility: The Value Proposition for SAP customers
 

Enable process visbility: The Value Proposition for SAP customers

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This presentation was given by Joe Kaczmarek, Worldwide Sales Leader, IBM Business Process Management and Operational Decision Managemnt....

This presentation was given by Joe Kaczmarek, Worldwide Sales Leader, IBM Business Process Management and Operational Decision Managemnt.
It was presented during Impact 2012 in Mumbai on the 1st of June, 2012.

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    Enable process visbility: The Value Proposition for SAP customers Enable process visbility: The Value Proposition for SAP customers Presentation Transcript

    • Shop Floor Automation and Solutions toEnable Process Visibility and ImprovementThe Value Proposition for SAP CustomersJoe KaczmarekWorldwide Sales Leader, IBM Business Process Management andOperational Decision ManagementJoe.kaczmarek@us.ibm.com
    • Session Themes  Integrated application systems (ERP, CRM, MES, etc.) provide core business support  The attractiveness and pervasiveness of best practice process adoption has raised the bar in achieving marketplace differentiation  The tension between standardized and differentiated processes in the manufacturing context creates pivotal strategic decision points  IBM has developed approaches and solutions for achieving process innovation and continuous improvement for manufacturers in a packaged application environment2 © 2012 IBM Corporation
    • Agenda  Shop Floor Automation solutions  Process challenges  Packaged application challenges  IBM BPM for SAP3 © 2012 IBM Corporation
    • Manufacturing Execution Systems (MES)  The MES has become the translation center between ERP and the real-time continuous data of plant operations  Controls vendors have developed MES offerings – Invensys Operations Management (IOM) – Rockwell – Siemens – Others…  In recent years, ERP vendors have extended their plant floor capabilities – ERP vendors have touted the easy integration that their MES provides – Best-of-breed MES suppliers typically have greater functionality – SAP, Oracle and even Microsoft have enhanced their MES offerings through R&D and acquisitions4 © 2012 IBM Corporation
    • Business Benefits of MES  Capability areas: – Automated data collection – Material control  Greater – Product traceability efficiency, profitability, prod – Quality control uctivity – Production reporting  Respond to market changes both quickly and  Benefit categories: correctly and help adopt – Data accuracy production processes – in real-time. – Reporting timeliness – Manual reporting reduction5 © 2012 IBM Corporation
    • Key Strategic Decision Point – Single Vendor or Best ofBreed? or Reduced integration costs and Typically, better functionality improved integration or functional alignment – but more integration required6 © 2012 IBM Corporation
    • Most MES Vendors Provide Some Technical Integration Capabilities…But much technical work remains to connect the ERP environment to the MES. An ESB is typically still required.7 © 2012 IBM Corporation
    • And Technical Integration is Only Half the Solution Finance Executive Process and Ops Management Managers Account Administration Risk Management Teams Business Integration Customer Service (Workflow Management, Business Monitoring, Process Automation, Business Rules, Complex Event Processing) Technical Integration (ESBs, Adapters, Application Integration, B2B) Decision Managers8 © 2012 IBM Corporation
    • Agenda  Shop Floor Automation solutions  Process challenges  Packaged application challenges  IBM BPM for SAP9 © 2012 IBM Corporation
    • Typical Process Problems Customer Service Finance Account and Ops Administration • Incomplete or Executive 6 inaccurate workflows 1 Management 3 • Lack of control • Poor performance visibility and insight Invoice Reconciliation • Inability to integrate Teams 2 unstructured or ad hoc tasks and communications (ex paper, email or 4 IM) 510 © 2012 IBM Corporation
    • Process is a Priority to Clients Make business process more efficient 56% Introduce new IT-led products or services for our customers Process is 40% Priority! Get better business intelligence to more employees, faster 36% Lower IT or business costs 36% Improve Web operations or customer experience 34% Improve customer service 26% Engage customers in new ways 24% Process Improvement is the #1 Priority for CIOs - 5 years in a row Gartner, Inc, “Leading in Times of Transition: The 2010 CIO Agenda” Data September 2010 Information Week 500 Survey11 © 2012 IBM Corporation
    • Agenda  Shop Floor Automation solutions  Process challenges  Packaged application challenges  IBM BPM for SAP12 © 2012 IBM Corporation
    • Packaged ERP Applications Deliver Strong Business Value  Improve alignment of strategies and operations  Improve productivity and insight  Reduce costs through increased flexibility  Support changing industry requirements  Reduce risk  Improve financial management and SAP customers excel by corporate governance taking advantage of SAP’s industry-specific  Optimize IT spending knowledge, best practices  Gain higher ROI faster and standardized processes  Retain top performers – all codified into the world’s leading integrated  Give employees new ways to application platform. access the enterprise information required for their daily activities.13 © 2012 IBM Corporation
    • But Still Far Short of Their Full Potential What ERP/MES typically deliver value today Where they fall short Improve operational alignment Improve strategic alignment Improve productivity Improve insight Reduce costs Increase flexibility Support changing industry Support differentiated processes requirements Improve ROI Improve ROI faster New ways to access enterprise Provide active real time business information monitoring Optimize IT spending Optimize business value14 © 2012 IBM Corporation
    • And Implementation Risks Remain… METRIC AVERAGE Took longer than expected 57% Total implementation cost exceeds budget 54% Failed to realize 50%+ of benefits 41% Failed to realize some benefits 22% Operational disruption at go-live 40% Executives unsatisfied 32% Employees unsatisfied 39% Source: Panorama Consulting 2010 ERP Report15 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software Root Causes of SAP Implementation Issues Most SAP implementation …much documentation is customization static and does is often not reflect the required processes actually being used Most SAP processes rely on human …making it compliance difficult to with process migrate to documentation future releases … s16 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software A Typical SAP Process Today A high level process blueprint is defined in Powerpoint, Visio, SAP Solution Manager or a modeling tool, including transactions: VD03 - Display customer master VA01 - Create sales order; VOK0 - Maintain Pricing; CK51N - Create Order BOM Cost Estimate IW21 - Create notification The implementation then relies on users to read, properly understand and comply with documentation by entering the proper sequence of transaction codes in SAP.17 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software With This Approach, How Can You?....  Quickly know the status of key A high level process blueprint is defined in processes? Powerpoint, Visio, SAP Solution Manager or a modeling tool  Ensure that the process you VD03 - Display customer master designed is the process that is being VA01 - Create sales executed? order; VOK0 - Maintain Pricing;  Get real-time visibility into where CK51N - Create Order workload or other bottlenecks are BOM Cost Estimate causing business issues? IW21 - Create notification  Effectively reroute work to less experienced workers to reduce The implementation then relies on users to read, properly understand and comply with bottlenecks? documentation by entering the proper sequence of transaction codes in SAP.  Know which process changes are most likely to help improve business performance? Many SAP customers attempt  Quickly rollout SAP process to address these issues with changes? customization.  Quickly integrate new process workers into your business?18 © 2012 IBM Corporation
    • Agenda  Shop Floor Automation solutions  Process challenges  Packaged application challenges  IBM BPM for SAP19 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere softwareWith IBM BPM 8.0 The picture IS your process… Analyze. Define. Execute. Monitor. Improve. All in one tool – analysis through execution through improvement s20 © 2012 IBM Corporation
    • BPM Brings Order to the Chaos Finance Executive Process 1. 1 Automate workflow & and Ops Management Managers decision making Account Administration Risk Management 2. 2 Reduce errors and Customer Teams improve consistency Service 3. 3 Standardize resolution across geographies 4. 4 Leverage existing systems and data 5 5. Monitor for business events and initiate actions 6. 6 Real-time visibility and process control Customer Benefits: • Huge Reduction in Manual Work, Errors • Faster, More Consistent Issue Resolution Decision • Easier to Manage the Managers Business • Consistent Case Handling21 © 2012 IBM Corporation
    • Two Methods Are Required to Optimize Business Processes 1. Packaged Applications 2. BPM Tools & SOA  Improve 100‟s of processes at once  Adapt quickly  Outpace the competition  Sunset inflexible legacy systems  Process visibility across core and  Catch up to competitors other application systems  Huge multi-year projects  Smaller, incremental projects Natural Tendency Natural Tendency BPM Process Optimization Process Optimization Approach A Approach B Non-Differentiating Differentiating Business Processes Business Processes Successful organizations will have a balanced I/T Strategy of SOA/BPM and ERP Consolidation22 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software IBM BPM V8 Integrates Seamlessly with SAP SD FI Sales & Financial Distribution Accounting Orchestrate SAP MM Materials CO Services Mgmt. Controlling AA PP Asset Production Accounting Planning SM Service SAP EC Enterprise Controlling Mgmt. QM Applications PS Project Quality Mgmt. System PM Plant WF Maintenance Workflo w HR IS Human Industry Resources Solutions Monitor SAP Business Events Download processes Upload processes to Retrieve Enterprise from Solution Manager Solution Manager Service Definitions s23 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software Applying IBM BPM for SAP Modeling for Use an iterative, experiential-based approach to Documentation accelerate traditional SAP blueprinting Mine SAP business events to discover actual Real-Time Monitoring processes and act in real time to business challenges Increasing Integration Interactively guide end users through SAP and E2E Guided Workflow process steps to improve productivity, visibility and consistency Process Integration Optimize process steps to improve cycle and Orchestration time, manageability and visibility of key processes Inline Decision Automate complex decision making to reduce Automation bottlenecks and improve business outcomes Dramatically reduce the cycle time of high volume Process Automation processes by reducing/removing human interaction24 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software Applying IBM BPM for SAP Modeling for Use an iterative, experiential-based approach to Documentation accelerate traditional SAP blueprinting Mine SAP business events to discover actual Real-Time Monitoring processes and act in real time to business challenges Interactively guide end users through process steps Guided Workflow to improve productivity, visibility and consistency Process Integration Optimize process steps to improve cycle time, and Orchestration manageability and visibility of key processes Inline Decision Automate complex decision making to reduce Automation bottlenecks and improve business outcomes Dramatically reduce the cycle time of high volume Process Automation processes by reducing/removing human interaction25 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software How Most SAP Customers Model Their Processes Today  Most SAP customers use general purpose documentation tools such as Office or Visio  Some leverage Aris or another documentation- centric modeling tool  These tools encourage: – A documentation-centric approach to process management – A waterfall approach filled with risk and multiple delay points – Lengthy „analysis paralysis‟ SAP project activities26 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software Traditional SAP Implementation Approach Goal Setting and Scope Management SAP Process Process Library Analysis  Most SAP implementations follow a typical waterfall approach – Goal setting SAP Process Blueprinting – Analysis (Powerpoint, Visio, Excel, Aris) – Design – Test SAP Solution Manager – Deployment  SAP maintains their process flows in Solution Manager, which is used to document, but not control, the business Configure Customize process27 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software But with IBM BPM, SAP Processes Can Be Played Back At Any Time - Regardless of their definition maturity  Start by importing SAP or IBM best practice libraries  Playback any process from the design environment – regardless of the level of detail and completion  Include real screens, mockups or images  Clarify roles, process steps, flow, KPIs and reporting Playback  Even process skeletons can be executed – Process execution is logged – All process performance parameters are visible – KPIs are calculated and displayed in real time28 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software Design SAP Processes Experientially  Playbacks allow each stakeholder to participate DIRECTLY in the blueprinting process  The ability to see, feel and touch the process as it‟s executing: – Delivers a richer, superior design experience – Allows a broader range of participants – Allows stakeholders to participate as their schedule permits – Encourages an iterative approach – Decreases the time required to blueprint a process29 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software Playback-Based Iterative SAP Process Blueprinting SAP Solution Design, build and refine processes for execution in Model Processes a single integrated tool set. Optionally store Manager process definitions in SAP Solution Manager Repository. Invoke Screens Iteratively invoke or design screens as part of the process definition exercise Playback Process Playback modeled processes at any time to directly see, feel and touch the real process Monitor Results Empirically understand how the process can meet KPIs and SLAs Simulate and Simulate changes without changing the current Refine model Deploy! Promote the new or changed process into production Use ‘live’ process execution to design and test SAP business processes, then implement your SAP process inside the same tool!30 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software Applying IBM BPM for SAP Modeling for Use an iterative, experiential-based approach to Documentation accelerate traditional SAP blueprinting Mine SAP business events to discover actual Real-Time Monitoring processes and act in real time to business challenges Interactively guide end users through process steps Guided Workflow to improve productivity, visibility and consistency Process Integration Optimize process steps to improve cycle and Orchestration time, manageability and visibility of key processes Inline Decision Automate complex decision making to reduce Automation bottlenecks and improve business outcomes Dramatically reduce the cycle time of high volume Process Automation processes by reducing/removing human interaction31 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software SAP Process Documentation Is Usually Outdated by Months or Years 2008 2012 SAP process Probably blueprints created Outdated SAP design Probably completed Outdated SAP configuration Documentation changes Additional SAP configuration changes Possibly Outdated completed SAP Documentation customization Additional SAP customization Possibly Outdated completed Ad hoc changes to processes by end Blueprint Not users Updated Without insight into the ‘real’ SAP processes being used in production, it is very difficult to initiate and build an effective process innovation program or to migrate to a newer SAP release.32 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software IBM Business Monitor Provides Easy to Use SAP Process Discovery and Insight  View SAP transactions as processes – without process orchestration!  Easily create „shadow process‟ views of SAP Business Events by associating milestones with changes in business state  Completely non-intrusive to SAP – simply turn on the SAP Business Events needed  Automatically create a process view of any SAP Business Event(s) to: All without disrupting – Understand the actual SAP your SAP environment! processes being used in production (and no custom coding) – Prepare for process innovation – Detect business challenges as they happen – Fix issues before they become problems33 © 2012 IBM Corporation
    • IBM Business Monitor - Powerful BAM and Real-Time Reporting for SAP Understand up-to- minute business Identify trends, performance by forecast events, monitoring KPIs make smart choices Detect, respond rapidly to change Continuously improve key Customize business processes dashboards easily Rebalance human workload on the fly Leverage mobile devices34 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software Applying IBM BPM for SAP Modeling for Use an iterative, experiential-based approach to Documentation accelerate traditional SAP blueprinting Mine SAP business events to discover actual Real-Time Monitoring processes and act in real time to business challenges Interactively guide end users through process steps Guided Workflow to improve productivity, visibility and consistency Process Integration Optimize process steps to improve cycle and Orchestration time, manageability and visibility of key processes Inline Decision Automate complex decision making to reduce Automation bottlenecks and improve business outcomes Dramatically reduce the cycle time of high volume Process Automation processes by reducing/removing human interaction35 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software IBM BPM Can Deliver Guided Workflow for SAP Yes VOK0 - Maintain Pricing VD03 - Display VA01 - Select New pricing customer Create customer Required? master sales order No SAP Process Flow CK51N - Create IW21 - Create in IBM BPM V8 Order BOM Cost notification EstimateTransactions (Native SAP Screens) Automatically Invoked in SAP Invoke the correct SAP transaction sequence for each process instance, while gaining real time insight into business performance issues and opportunities36 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software IBM BPM Guided Workflow Improves SAP Value  Documented processes become orchestrated processes  Improve SAP process: – Visibility – Manageability – Reliability – Consistency – Auditability – Performance  Detect bottlenecks  Reroute process instances with capacity overload  Escalate problem processes  Initiate and track exception processes  Begin continuous process improvement37 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software Applying IBM BPM for SAP Modeling for Use an iterative, experiential-based approach to Documentation accelerate traditional SAP blueprinting Mine SAP business events to discover actual Real-Time Monitoring processes and act in real time to business challenges Interactively guide end users through process steps Guided Workflow to improve productivity, visibility and consistency Process Integration Optimize process steps to improve cycle and Orchestration time, manageability and visibility of key processes Inline Decision Automate complex decision making to reduce Automation bottlenecks and improve business outcomes Dramatically reduce the cycle time of high volume Process Automation processes by reducing/removing human interaction38 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software Use IBM BPM V8 to Orchestrate SAP Externally Adapter Guided Workflow Process Management for Orchestration SAP BAPIs and/or Automation Process with SAP Enterprise Orchestration Services and/or Automation with BAPIs Express, Standard or Advanced Only (BPEL) Advanced Only (BPEL) Advanced (BPMN)39 © 2012 IBM Corporation
    • IBM BPM V8 Orchestrates Complex End-to-End Processes End-to-End Process Choreography1. Order is 3. Credit check 4. Customer order 5. Required 8. Customer 2. Customer received and approval is written and components order is records are from the web are confirmed for and capacity produced, pic updated with site completed production are ked from order request determined, warehouse information ordered, allo and 6. Production order cated and scheduled for 9. Customer is completed and received shipping order is warehoused invoiced 7. Customer order is approved for shipment IBM BPM 8.0 helps improve the business performance of both simple and complex mission-critical processes.40 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software BPM Enhances the Value of Your SAP Investment SAP with IBM Benefit SAP Only BPM Improve alignment of strategies and operations   Improve productivity   Improve insight   Reduce costs through increased flexibility   Support changing industry requirements   Optimize IT spending   Reduce risk   Improve financial management and corporate governance   Gain higher ROI faster   Provide immediate access to enterprise information   Give employees new ways to access enterprise information  41 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software Use IBM BPM Throughout Your SAP Life Cycle A New SAP Implementation SAP Process Innovation End-to-End Process Integration Functional Extensions SAP Version Migration s Most SAP Implementations Benefit from IBM BPM at every life cycle stage42 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software Small Sample of IBM BPM SAP Customers43 © 2012 IBM Corporation
    • IBM is the proven leader in all aspects of BPM Largest Client Base Unparalleled expertise • 5,000 + BPM Clients & level of investment • Gartner ranks IBM #1 in • Over 15 years of industry BPM with 24.7% share leadership • IDC ranks IBM #1 with • 100’s of assets 34.2% market share • Broadest, Deepest solution portfolio & services Strongest Ecosystem • 1000+ Business Partners • Global Users group Broadest and Most Differentiated Software Capabilities • Simplicity for fast deployment and full business user participation • Centralized governance for repeatability and consistency • Visibility and Control to continuously improve business operations • Power through High Scalability, Integrity & Quality of Service • Market Leading process, case, decision and rules capabilities • Best in class exceptions handling and case management44 © 2012 IBM Corporation
    • IBM and SAP Partnership - Qualified, Awarded, Proven  Certified Global SAP Partner – Global Service Partner – Global Technology Partner – Global Cloud Service Partner  With a record total of 20 awards, IBM has been recognized with an SAP Pinnacle Award every year since its inception SAP Award of 2005 2006 2007 2008 2009 2010 Excellence for IBM 2 awards for IBM 2 awards for IBM 3 awards for IBM 3 awards for IBM 4 awards for IBM 2 awards for IBM  IBM itself is one of the largest productive SAP users – 40,000+ SAP production users, mixed release levels, all on IBM hardware – Improved bookings efficiency by 40% – Increased labor productivity by 15% – Reduced server build cycle times by 30%45 © 2012 IBM Corporation
    • IBM SAP International Competency Center (ISICC) Provide technical pre-sales solution support for SAP applications and technology with IBM hardware and software platforms.  On-Site Resources  SAP Sizing Expertise • IBM hardware and • Creation and ownership of software brand experts worldwide sizing tools and • Technology managers processes • Solutions sales • Support the IBM Techline • Project managers resources  Technology  Technical Sales Support • IBM and SAP projects • IBM Technical Sales • Benchmarking/Sizing tests • Business Partners • Redbooks and whitepapers • Tools  Third level support when • Executive briefings necessary Founded by IBM and SAP in 1993, located at the SAP headquarters in Walldorf, Germany46 © 2012 IBM Corporation
    • Next Step – BPM Discovery Workshop  A collaborative workshop between the IBM and you to: – Determine which areas of business pain and/or opportunity are good fits for BPM – Identify and prioritize potential BPM pilot projects – Select and scope a pilot project (90-120 days)  What does the IBM team do? – Clarify the process improvement pilot project scope – Characterize the expected business impact and benefits – Assess the high-level implementation effort and solution development – Identify and assess potential risks – Identify and rank additional projects beyond the pilot project  How does it work? – Delivered onsite through collaborative discovery sessions with process owners and key stakeholders – Pre-workshop preparation calls provide orientation and workshop planning – Preparatory time is also spent gathering and reviewing existing customer process documentation  Typically 2-3 days, conducted free of charge47 © 2012 IBM Corporation
    • 48 © 2012 IBM Corporation
    • IBM Blueworks Live Document and Run Processes in the Cloud  Increase agility by documenting and refining processes in a tool that keeps everyone informed of important changes  Make your organization more efficient by automating simple processes that run today over email - in as little as 90 seconds!  Improve the way you work by seamlessly collaborating across roles, teams and locations. Sign up now for a free 30 day trial. https://www.blueworkslive.com/signup/trial  Escape your inbox by automating the 75% of processes organizations currently execute as email exchanges Ensure your documentation keeps up with change while maintaining oversight and governance over process improvement49 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software IBM Uses IBM BPM Technology For Its SAP Implementation Blue Harmony is IBM’s next significant step in transformation towards operating effectively as a Globally Integrated Enterprise … Blue Harmony incorporates IBM BPM technology Global Integration Opportunity to Order Order to Cash Finance .. focuses on enterprise process integration  Integration and standardization across business units and across geographies  A shift in culture from optimizing units to optimizing the enterprise  Substantial improvement in ease of doing business for clients and Business Partners  Radical transformation of process and IT environment simplifies enterprise controls ... implements a solution architecture that leverages the best of IBM and SAP products – a showcase for IBM BPM capabilities.50 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software IBM BPM Drives Faster and Better Blueprinting for Your SAP Implementation  „Live‟ playback during all phases of process design and rollout  Reduce blueprinting time and costs  Deliver agile SAP business processes that are easy to change  Create market-differentiating SAP processes  Position your SAP implementation for process orchestration and continuous process improvement Business users can directly drive the SAP blueprinting process.51 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software Event-Based Business Monitoring Can Be Used to Uncover the „Real‟ SAP Processes VD03 - Display customer A list of detailed business master events, describing what was actually done by the user VA01 - Create sales order; • Customer displayed (VD03) • Customer changed (VD04) VOK0 - Maintain Pricing; • Sales order created (VA01) • Sales order modified (VA02) CK51N - Create Order • Pricing Maintained (V0K0) BOM Cost Estimate • Sales order modified (VA02) • Notification previewed (IW22) IW21 - Create notification Which could be • Order BPM cost estimated analyzed by a data created (CK51N) + analyst or process • Sales order modified (VA02) specialist to Ad hoc or added • Customer displayed (VD03) discovery real process steps process structures SAP can create and publish the business events needed to discover the actual business processes in production52 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software But SAP‟s Business Monitoring Approach is Overly Complex …And lots of custom coding is required to implement53 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software SAP Solution Manager Stores SAP Process Definitions But has no process execution capabilities Approximately 40% of SAP customers use Solution Manager to store process definitions Process definitions only – cannot be executed54 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software Resulting in a High Amount of Costly SAP Customization  Top reasons for SAP customization: – Streamline or customize the SAP user interface – Streamline or customize the SAP process flow – Add complementary functionality – Integrate with non-SAP systems  SAP provides tooling to accomplish each, but not in the same tool  IBM BPM V8 provides all four capabilities in a single tool, driven by the process definition  Reducing SAP customization reduces cost and deployment time, while minimizing risks to future SAP updates55 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software SAP Provides Services That Help Reduce Customization public String search(){ try { // Retrieve an instance of the configuration port EmployeeBasicDataByEmployeeQueryResponseIn port = service .getEmployeeBasicDataByEmployeeQueryResponse_InSoapBinding(); // specify username and password issued for you via SDN // to authenticate to the backend as follows javax.xml.ws.BindingProvider bp = (javax.xml.ws.BindingProvider) port; Map<String, Object> context = bp.getRequestContext(); context.put("javax.xml.ws.security.auth.username", "username"); context.put("javax.xml.ws.security.auth.password", "password"); // Construct the input to be applied to the service call EmployeeID employeeID = new EmployeeID(); employeeID.setValue(this.employeeID); EmployeeBasicDataSelectionByEmployee employeeByEmployee = new EmployeeBasicDataSelectionByEmployee(); employeeByEmployee.setEmployeeID(employeeID); EmployeeBasicDataByEmployeeQueryMessage input = new EmployeeBasicDataByEmployeeQueryMessage(); input.setEmployeeBasicDataSelectionByEmployee(employeeByEmployee); // Invoke the business methods EmployeeBasicDataByEmployeeResponseMessage output = port .employeeBasicDataByEmployeeQueryResponseIn(input); Employee employee = output.getEmployee(); //Get the response this.employeeName = employee.getCommon().getName().getGivenName(); this.employeeLastname = employee.getCommon().getName().getFamilyName(); this.employeeBirthday = employee.getCommon().getBirthDate(); this.employeeMaritalStatus = employee.getCommon().getMaritalStatusName().getValue(); return "ok"; } catch (Exception e) { //Clean the object and return an error this.employeeID = ""; this.employeeName = ""; this.employeeLastname = ""; this.employeeBirthday = null; this.employeeMaritalStatus = ""; return "error"; } s …but no easy way to implement56 © 2012 IBM Corporation
    • IBM Federated Integration Architecture StrategyDesign for flexibility, agility, innovation and ROIApp-centric Integration IBM Federated Architecture Every business strives to be Total Cost unique, resulting in heavy Total Cost process customization for all but a verySAP few, commodity processesCustomizations Drive down cost SAP Customizations Improve responsiveness to business requirements SAP SOA SAP Achieve greater SOA flexibility Business Fit Business Fit Flexibility Flexibility Implement SAP in your company’s best interest, not SAP’s.57 © 2012 IBM Corporation
    • 3 Life Cycles of Business Change Management Application Changes (Months, Years) IT Release 1.0 Release 2.0 BPM Changes (Weeks, Months)Business Process Owners Change in production Subject Mater Experts Operational Decisions Release 1.1 Release 1.2 Release 1.3 Release 2.0 Release 2.1 Business Decisions Updates : Application up to date (Days, Weeks)58 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software Applying IBM BPM for SAP Modeling for Use an iterative, experiential-based approach to Documentation accelerate traditional SAP blueprinting Mine SAP business events to discover actual Real-Time Monitoring processes and act in real time to business challenges Interactively guide end users through process steps Guided Workflow to improve productivity, visibility and consistency Process Integration Optimize process steps to improve cycle and Orchestration time, manageability and visibility of key processes Inline Decision Automate complex decision making to reduce Automation bottlenecks and improve business outcomes Dramatically reduce the cycle time of high volume Process Automation processes by reducing/removing human interaction59 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software Applying IBM BPM for SAP Modeling for Use an iterative, experiential-based approach to Documentation accelerate traditional SAP blueprinting Mine SAP business events to discover actual Real-Time Monitoring processes and act in real time to business challenges Interactively guide end users through process steps Guided Workflow to improve productivity, visibility and consistency Process Integration Optimize process steps to improve cycle time, and Orchestration manageability and visibility of key processes Inline Decision Automate complex decision making to reduce Automation bottlenecks and improve business outcomes Dramatically reduce the cycle time of high volume Process Automation processes by reducing/removing human interaction60 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software The Value of IBM BPM for SAP  Business performance  Variability  Agility  Manageability  Flexibility  Auditability  Visibility  Consistency61 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software Large US Toy Company Improves SAP Supply Chain Processes to Reduce Costs BPM Solution Challenge:  Increase responsiveness with customers and • Gathers the bill-of-lading information from collaboration with suppliers while utilizing freight forwarders and corresponding invoice data from SAP at the right time previous investments in core enterprise applications • Automatically prepares and routes all documentation required • Automates the reconciliation process Benefits: required for all US Customs requirements,  Increased productivity by 250 percent updating SAP at each milestone without additional resources being put into play  Reduced cycle times by 80 percent, from 12 days to only two  Improved overall business efficiency IBM BPM reduced dependency on phone calls, e-mails and paper faxes, while standardizing communication between employees and vendors with increased process visibility62 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software Examples of IBM‟s Own BPM Projects and Benefits in 2011 Mid-Market Deal Registration – Delivered $18.5M 2012 PTI by reducing deal registration cycle time with rules-based work-flow automation. Supply Chain Alerts – Over $2M annual savings for timely notifications when supply chain disruptions occur. Pricing estimator for Cross-brand solutions – Reduced pricing proposal implementation from 14 days to 1 day and deployment to new countries in Business Agility days versus weeks. Achieved GTS Cloud Sales Enablement – Integrated work-flow, rules and monitoring to reduce partner “register to welcome kit” cycle-time from days to hours. GMU Geo Location Code Assignment - Geo location code is key enabler of GMU expansion. Eliminated manual process and enabled GMU reps to update rules directly and reduced cycle time to update and run rules from several weeks with many handoffs to just a week for more than 50 countries. MTS – Increased IBM Client satisfaction through proactive notification of exposures in clients‟ IT inventory by applying rules derived via analytics. Proof of value delivered. Infrastructure Optimization – Reduced cycle time by 75% to complete the analysis required to migrate from Physical servers to Virtual servers.63 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software IBM Pricing Estimator for Cross-brand solutions Problem Takes up to 14 days to create proposals for IBM cross-brand solutions. Prices are hard coded, workflow is manual and there is dependence on IT teams for business rule changes. Solution Scalable web based solution using IBM BPM products (ILOG JRules and WLE 7.2) to significantly reduce cycle time for end-to-end price quotation and approval process for IBM cross brand solutions. Deployed smart analytics pricing estimator to 10 countries and cloud estimator to 32 countries. Note: The solution Release cycle was only 12 weeks. Business Agility Improvements Before Current State End-to-end process cycle time to create an approved price Reduced process cycle time to create an approved price quote in 1 quote took 4 to 14 days day Deployment to new countries took 4 weeks Deployment to new countries in 1 week Dependence on IT resources to make changes to business Reduced dependency on IT resources. Business teams can rules with 2 weeks turn around time change business rules in hours. Manual price updates with rigid business rules and Automatic price updates with rapid business rules and process implementation process changes with real time KPI monitoring. Just-in-time sales promotions were not possible Just-in-time sales promotions are possible Built on Microsoft technology with no auditability Built with IBM BPM and ODM technologies with auditability64 © 2012 IBM Corporation
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    • IBM BPM for SAP IBM Software Group | WebSphere software So That You Can…. Orchestrate agile SAP Instead of simply s processes documenting rigid ones66 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software How IBM Uses BPM – Some Examples Project Name Modeling & Monitoring Process Execution & Rules and Pre- Content & Project Status Simulation Optimization built Collab, Case Frameworks Manager GBS Services Project Blueworks Live BPM 7.5 I-Log J Rule Modelling in BWL prior to PC/PD. Agreement to On/Off Boarding U I I 4hrs/wk with Ricardo Olivieri (Aug-Oct) Smart Travel Blueworks Live WLE I-Log J Rule POC, Europe U U U Mid Market Small Blueworks Live BPM 7.5 Current focus on process/policy Deals Yield I I simplifications Enablement follows Dubuque GDC ITD Blueworks Live BPM 7.5 I-Log J Rule J.Brayer forming team to initiate modelling of GDF I I I portfolio. Current focus is Simple Project Set-up Contract Blueworks Live In Measure/Analyze Simplification -R GTS Cloud IT Blueworks Live I-Log J Rule - U Phase 1 – process design complete. Enablement for -R Growth Phase 2 - proposal in progress. (formerly called GTS BPM – Cloud – Buy to Use) evaluation + custom demo 1/12 Web based Pricing WLE i-log J Rule Solution deployed for U.S and other countries Sales (Smart Analytics) PR PR teams. Total Risk i-Log J Rule In production- Aug 11 assesment-Supply PR Chain alerts Blue Harmony WBM 7.0 Working with BH process owners to identify reports R v/s real time monitor value67 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software Your SAP Processes Deserve the Market Leader: IBM The Forrester Wave: The Gartner Magic Quadrant: "Comprehensive Integration Solutions" Wave “2010 Business Process Management Suites" MQ WebSphere Process Server WebSphere Lombardi drives IBM leadership in Edition drives IBM Forrester Wave leadership in Gartner MQ high performance simple to use excellent integration fast time-to-value superior integrity s deep business engagement68 © 2012 IBM Corporation
    • ERP Vendors and MES  SAP – Acquired Lighthammer in 2005 to provide manufacturing intelligence and MES-like functionality to its process manufacturing customers. – Acquired Visiprise in 2008 to bolster its MES offering to discrete manufacturers.  Oracle – Oracle Manufacturing Execution System for Process Manufacturing as an add-on to its Oracle Process Manufacturing System. – Oracle Manufacturing Execution System for Discrete Manufacturing (MES for Discrete  Even as ERP vendors are offering manufacturing support modules, they haven‟t attempted to enter the control space.  MES products from Oracle and SAP are getting very robust  Third parties don‟t have all the interaction with the ERP that you get with Oracle and SAP  hop floor automation is the next frontier for manufacturing ERP software.69 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software Modeling Solutions Like ARIS Only Help Deliver Documentation Faster  Better than Powerpoint, Visio or Excel  Can be integrated with the SAP Solution Manager process repository  Models are optimized for analysis, not execution  Virtually impossible to take an analysis model and use it s directly for execution70 © 2012 IBM Corporation
    • IBM BPM for SAP IBM BPM Can Easily Exchange Models with SAP Solution Manager SAP Solution Manager IBM Process Designer Business Process Hierarchy Lev 0 Project Process Application Lev 1 Business Scenario SSI4BPM Lev 2 Business Process Process Lev 3 Process Step Activity, (Sub-)process, Service Implementation Content SAP Implementation Content eg. Transactions, Docs IBM BPM maps its process elements directly to SAP Solution Manager constructs and performs bidirectional exchanges s71 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software Most SAP Implementations Have Issues Today Late Deployments Over Budget Rigid Processes Poor Operational Visibility ROI Targets Not Met s72 © 2012 IBM Corporation
    • IBM BPM – An innovative solution to a complex problemEmbrace complexity, adapt quickly and exceed expectations Simplicity PowerSimple, easy-to-use modeling using Industry standard BPEL orchestration standard BPMN Built-in ESB and integration adapters Immediate “playback” for rapid collaboration Transaction and Process Integrity support Process rule engine uses ILOG WebSphere Application Server scalability BAL language Visibility Governance Integrated Business Activity Single repository of all process assets Monitoring “Toolkits” for sharing assets Real-time process scoreboards Simple snapshot versioning (1-click) “Heat maps” show bottlenecks in process model Centralized deployment control center (1-click)73 © 2012 IBM Corporation
    • IBM BPM Overview BPM provides innovative tooling to capture, understand, document, collaborate, and optimize ANY business process causing the most pain, or needing the most visibility BPM projects do not require disruptive multi-year investments Create process models that execute the process Easily provide business owners with real-time monitoring of any process that has been implemented with the tooling Finance and Ops Risk Management Teams Account Executive Management PEOPLE Administration Customer Service RULES PROCESS SYSTEMS74 © 2012 IBM Corporation
    • IBM BPM for SAP IBM Software Group | WebSphere software Workflow in the Traditional SAP Implementation VD03 - Display customer master VA01 - Create sales order; VOK0 - Maintain Pricing; CK51N - Create Order BOM Cost Estimate IW21 - Create notification  Process designers create SAP documentation (paper, Word, HTML, etc.)  Users are trained in how to use the SAP process documents  Some users comply with the process as designed, others create their own  Training time for new users is often lengthy  Difficult to move users from task to task, even in the same department  Little to no visibility of backlogs, bottlenecks, poor throughput and other process issues75 © 2012 IBM Corporation